Q1 2021 IT Tech Packaging Inc Earnings Call

Hello, ladies and gentlemen, and welcome to participate in packaging.

Packaging first quarter 2021 earnings conference call.

At this time I would like to inform you that this conference is being recorded.

And it all participants are in a listen only mode.

Joining us today are Mr. Zheng young Lou I detect packaging, chairman and Chief Executive Officer, and MS. Jing Hao, the Companys Chief Financial Officer.

From both Mr. Lu and that's how it will be delivered in English by interpreters.

I detect packaging announced its first quarter 2021 financial results via press release yesterday, which can be found on the company's website at www Dot IV packaging Doxy and.

First Mr. Liu will brief you on the Companys key operational highlights over the first quarter 2021, and then there's Paul will review the company's financials and job.

Before we start I would like to draw your attention to our safe Harbor statement.

Management's prepared remarks contain forward looking statements within the meaning of the safe Harbor provisions of the private Securities Litigation Reform Act of 1995.

All statements other than statements of historical facts and its announcement are forward looking statements, including but not limited to anticipated revenues from the corrugated medium paper.

Tissue paper, and offset printing paper business segments.

Actions and initiatives of current and potential competitors. It comes.

And he's ability to introduce new products.

The company's ability to implement capacity expansion market acceptance of new products general economic and business conditions.

Ability to attract or retain qualified senior management personnel and it research and development zone.

And other risks detailed in the company's filings with the Securities and Exchange Commission.

These forward looking statements involve known and unknown risks and uncertainties and are based and current expectations assumptions estimates and projections about the company and the industry.

The company undertakes no obligation to update forward looking statements to reflect subsequent or current events or circumstances or to change it and its expansion, except as maybe required by law.

And although the company believes that the expectations expressed and these forward looking statements are reasonable it.

It cannot assure you that this expectation will it turn out to be correct and it.

Investors are cautioned that actual results may differ materially from the anticipated results.

Yes.

There is a presentation document featuring management's prepared remarks, and it is now available for download it from the company's website at Www Dot I T packaging Doxy and.

Please note that there will be discussions and non-GAAP financial measure or EBITDA or earnings before interest taxes depreciation and amortization.

Please refer to our press release for a complete reconciliation of EBITDA and net income.

It was a kind reminder, all numbers in our presentation are coded and U S dollars and all comparisons refer to year over year comparisons unless otherwise stated.

I would now like to turn the call over to Mr. Lou and his comments will be deliberate and English by Dawn Pal from Evergreen Investor Relations.

And the scalpel used go ahead.

Thank you operator, and good morning, everyone.

Thanks for joining our first quarter 2021 earnings conference call.

We continue to make improvements in the sales volume of CMP products with this quarter.

Our total revenue has increased.

176.9%, two two and a full point to meet it.

It resulted from 129 point full percentage gross of overall sales volume and low 24, and 7% increase in average selling prices over all categories of products.

Average selling prices.

Over all categories of products for this quarter increased to $11 99.

And I put down from the fourth quarter 2000 and punchy.

Well it took a quick recovery from the impact of global outbreak of COVID-19, pandemic toasting growing revenue from sales so.

<unk> paper.

Our printing paper and some people do it.

Oh, it production and sales of tissue paper products have been growing up suddenly since the launch of P. M eight and PMI in December.

2018 and November 2019.

Currently we have completed the fundamental constructions and he's new tissue paper production line, the Pinto and he's working on the installation and local affiliate and equipment.

I mean robust domestic market demand for tissue paper products and improved production efficiency, we will continue to expanding our capacity as we expect to see strong growth from tissue paper business segment. That's it greatly boost our overall puzzle.

And then.

In addition, we're also expanding the business to high and new technology business, such as combined heat and power generation project utilizing biomass technology project biomass CHP projects and expect to diversify our sources of revenue and being sure we're stable mode.

Profit, making.

Now I will turn the call over to our CFO and MS. Jing Hao, who will review and comment on the fourth quarter financial results.

Cummins will be delivered in English by my colleague and as well Chinese. Please go ahead.

Okay.

It sounds like toys, and our one full day all the cool that's it on behalf of the management team and our.

Alright, and some key financial results for the first quarter of 'twenty two anyway also okay and only.

And two specific production life and so.

They used it away its various products and maybe it was thought of it.

And you referenced the number and so as terms of our production lines to provide either and slide number 17.

Now, let's look at our financial cause all of it as far as first quarter of 2020. One please turn to slide number seven well it supposed to Guadalajara for 2020, one total revenue increase to longer is it 70.

Six 9% it to 24, one as Jim and it does he was the increase in sales and volume of corrugated medium paper N P and I'll share the printing paper and increased and average selling prices and.

It was phase of sandy and the tissue paper product.

Turning to slide eight towards it.

It is squads are all doing it anyway, the subtlety shukman, including both regular CMP and light weight and heat generation of revenue 20 cornerstone meeting with his anti aging like one and 6% total revenue.

17, Lilly and Alder revenue, whereas our regulus and they've got does and the strength going to dump it and where it is.

And lightweight CMP champions, and we bought them and still deliver.

And another increase to buy it hindered and a 21, one and 1% at two four and it went out and it to handle it and and not even think tongue.

Avoid so it is 3006 handle it and then 26 pounds doors, Iraq, and a 70 and is done and salad and the big thing to it and there's 17 pounds or lightweight 70.

Allergist selling price I'll ask people regular shouldn't be it increased by 21 four and.

5% of sales by handled and the bulk of it down and as painful lightweights and increased by 87 percentage to hinder it and 18 I could tell it.

And then just like nine so it first quarter of 2020, one well it recognized the revenue of one 1 million from offset printing paper products, resulting from sales of 300000 and the 100.

And do it and the 42 town and it.

And nasty of Syn 10, good and there's 70 history and tell them.

Turning to slide 10, well recognize the revenue of a one point is dwindling and.

And from tissue and paperboard as far as what it is the QUADRA of 2020, one resulting from sales of 1120 pounds, and then and nasty of 1000, and the way handle it and sending it goes off.

Turning to slide 11, well it show the same mill at 80, and do it and the 36000 and P. C zone, Phish message and the grid and the way it either revenue of your partners.

Third day melons from selling first months, because it's well it as far as the QUADRA and <unk> 2021 share.

And number two Oh it was summarized these changes and in our revenue mix.

For instance, it quarter after 2020, one total cost of sales increased by 34, and the flywheel and 222, four and the 4 million leading to total gross profit to a one quarter a demand.

Well it installed and the 100 and the seven day, a deploying the 8% increase from glass Roz I'll never appointed 2 million flow since your last a year and a little gross profit margin. It all.

Seven point and 6%.

For the first quarter of 2020, one as G&A expenses decreased by <unk>.

$5 three percentage due to point is big smell it and we all face it from operations to where they were appointed some it compared to loss from operations of <unk>.

And the 9 million Boes and peer loves the year operating loss margin, whereas three percentage compared to operating loss margin of 32, 8% for sitting here a year.

It was first quarter of 2020, one non loss, whereas it vocal and is Germany, and Brazil to England lots of choices for basic and diluted share.

Compared to a 90 day loss of two four and the Formula and a net loss of 11 cents per basic and diluted this year, but it is same period last year.

So it is supposed to quarter of 2020, one, but it needs before interest taxes, depreciation and all because they shouldn't it creates to buy it one point and 11 million to now go to the airport and the zero sum. It from 1.04 million was didn't hear it of lost a year.

Moving to slide 19, and 29 to look at the balance sheet and liquidity as of March 31st It shows on the 'twenty. One the company had a cash and bank balances short term debt, including bungalows and propulsion of long term loans the problem and try to do you mean, it and it related.

Party loans and the long term Dodge, including related party loans of.

C.

Oh 37, and the Formula.

And the 1 million and a 4.6 million respectively, compared it to bolt onto one related to it.

And the 2 million and a full point 6 million, respectively, as it and also 2020.

Now the accounts receivable, whereas fly point to Lilly as of March 30, <unk> 2021 compared it to two point, a ball mill and as of December 31st in 2020.

And I am enjoying whereas the seven point formula and it as of.

And my studying for it to sell it into 'twenty, one compared to one one and 2 million as it end of 2020.

And is it for much 30 for it the Tucson and in 'twenty, one and the company had it Carla assets of shake tea, and one point and 1 million and the car and liabilities of 24, and the Jo mill and bizarre.

And our working capital of 40 call it non minute Jim.

It's worth compared it to current assets of volume core and the non healing and in current liabilities of aging and is limited.

And in our working cap to adapt state of extreme cold and the ball mill and as it end of 2020.

Now the cash used in operating activities. The word is eight 3 million call. It first quarter of 2020, one conveyor to and out of cash provided by operating activities was.

Of Jigsaw.

And in Ireland was didn't hear last year now the cash used in investing activities, whereas there. According to zero Gourmet line. So it is first quarter of 2021 compared to the reported 15.

So it is they are important and a 17 6 million for this and here last year now the cash provided either by us and they say activities, whereas the 41.8 men and boys go to squander It all for 2020 one.

Compared to and out of cash from financing activities of zero for it to jump here and our last year.

And do you have any questions. Please contact us through E mail and I are at I T packaging does see and manage it made it will respond to your questions through email it as daunting as gospel.

Operator, Please go ahead.

Okay.

Thank you for attending it tech packaging as first quarter 2021 earnings conference call.

This concludes our call today and we thank you for listening and goodbye.

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